What is Territory Cutting?
Master-route planning is a complex logistics industry niche and it can prove tough for a client to buy in to its benefits until each of the main features or functionality areas of a software package have been clarified, or simplified. Here we dive into Territory Cutting.
Territory-based master-route planning, or territory cutting, involves the creation of unique regions on a map for the purposes of a client’s optimal utilisation of resources – whether sales or delivery related; whether staff or vehicles are being tallied up; whether fuel or time are of the essence.
Resources can be wasted if employees, or contractors, find themselves weaving across a territory, region, suburb or city, instead of concentrating their effort on an optimally sized service area – which should ideally be positioned near to where they live (sales) or in the vicinity of the warehouse they collect from (deliveries).
See Sleep-outs for scenarios where remaining in a far-off area, overnight, is more cost-effective for a sales or delivery staff member than returning home that evening.
So: what benefits may you derive, in selecting a master-route package (view features more features, in addition to territory cutting here) that incorporates territory cutting into the mix? Well, firstly, a sense of efficiency is created once set territories are identified. Next up, this territory dividing can be tailored towards any type of business need, as this alters over time; and both sales and delivery costs (fuel, vehicle maintenance, staff numbers) can be streamlined for maximum efficiency and cost-effectiveness. Customers are also likely to receive a better level of service if the sales or delivery person assigned to them is not over-stretched – from a coverage perspective.
Territory cutting is a practice that incorporates a consideration for everything from revenue, volume, frequency and time window, to delivery pattern and geographical location. Changes can be made according to the season and/or demand; and staff members will perform better if they are not overstretched from a coverage-of-ground point of view.
“I am happy to recommend MasterRouter, both in terms of the depth and capability of their software as well as the responsiveness and willingness of the team to assist.”
Andre Smit, Solutions Lead – DHL
"Beat delivery optimization has helped us structure our delivery routes, minimizing the manpower and resources required in delivering to 15% more outlets, with 10% lesser cost"
Mayank Pandey, Sales Capability Head – Perfetti